Global Value Chains in an Australian Context Roy Green 17 April 2015

UTS: BUSINESS

Global value chains in

an Australian context Roy Green

TCI conference, April 17 2015

Precarious future

Contributions to average incomes growth: Treasury

UTS: BUSINESS

Flat world...

or spiky

Manufacturing matters

R&D

SKILLS

TRADE

Population Manufacturing*

Scandinavia 23 million 5 companies

Australia 23 million 0 companies

Manufacturing

companies in

the Fortune

Global 500,

2011 annual

ranking

Global value chains > Global production networks and value chains are

key drivers of future manufacturing

> ‘Micromultinationals’ capture value through ‘smart

specialisation’ and clustering

> Competitive advantage not just new technologies

but non-technological innovation

> business model innovation, design and systems

integration, high performance work and management

practices

> Such innovation must go beyond continuous

improvement and become transformative.

National innovation system

Government

and public agencies

Finance

and

venture

capital

Research and

education

institutions

Enterprises

and workplaces

Investment in knowledge

% of GDP

6.8%

6.1%

5.5%

4.7%

4.1%

“Improving

management practice

is associated with large

increases in

productivity and

output.”

Australian management performance gaps

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

4

Australian score

Global best performing country score

OperationsManagement

Performance Management

PeopleManagement

Operations Metrics

Performance Metrics

People Metrics

Australia

Global best

Australian management performance gaps

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

4

Australian score

Global best performing country score

OperationsManagement

Performance Management

PeopleManagement

Operations Metrics

Performance Metrics

People Metrics

Australia

Global best

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

4

Australian score

Global best performing country score

OperationsManagement

Performance Management

PeopleManagement

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

4

Australian score

Global best performing country score

OperationsManagement

Performance Management

PeopleManagement

‘Instilling a talent mindset’

“Using creativity and design-based

thinking to solve complex problems is

a distinctive Australian strength that

can help to meet the emerging

challenges of this century.”

Australia in the

Asian Century, 2012

Business-university interaction

contributing to innovation (% firms)

Key policy steps Identify areas of existing and potential

competitive advantage (Knowledge Foresight)

Support SME participation in global markets and value chains (Micromultinationals)

Invest in knowledge creation, exchange and engagement (Innovation Ecosystem)

Promote design, technology and business model innovation (Business Transformation)

Upgrade management capability and integration of workforce talent (Creative Leadership)